Type of Law

Based on Spanish Civil Law with many Common Law influences, especially regarding Company Law, which is based on the Delaware model.

Corporate Legislation

Company law is based upon Delaware and New York legislation (Corporation Law No. 32 of the 1927 Commercial Code, Decree Law 5 of 1997 and Executive Decree 296 of 1997).  but corporate document presentation is very similar to Spanish civil law.

Corporate document presentation very similar to Spanish civil law, however, company law is based upon Delaware and New York legislation as it existed in the 1920s (see Law 32/1927). Has recently introduced 'private interest foundations' which are similar in form to the much more expensive undertakings offered by Liechtenstein (See Law 25/1995) allowing a 'founder' to on the one hand separate legal ownership whilst on the other potentially maintain full control over all endowments.

Unlike most civil law jurisdictions trusts are recognized and exist in Panamanian law. The world's foremost yacht and ship registration territory. Growing banking and insurance sector. Low indigenous individual and corporate taxes. Tax system is based on the 'territoriality' concept; therefore, revenue earned outside of Panama is totally free of Panamanian taxes. Currency trades on a par value with the US Dollar.